Podcast Summary: The Martell Method w/ Dan Martell
Episode: How to Invest Your Money Like The 1%
Host: Dan Martell
Date: January 6, 2026
Main Theme & Purpose
In this episode, Dan Martell breaks down how the ultra-wealthy—specifically the top 0.1%—actually invest their money and time, shattering common misconceptions. Pulling from his own journey from rehab at 17 to a $100M empire and bestselling author status, Dan reveals the four key stages of wealth-building, focusing first on personal growth and business re-investment before looking at traditional assets. He provides actionable frameworks, vivid anecdotes, and a mindset shift designed to help entrepreneurs and ambitious professionals escape stagnation, avoid burnout, and accelerate both personal and financial growth.
Key Discussion Points & Insights
1. Wealthy People Invest Differently (00:00)
- Common Misconception: Most people believe wealth begins with investing in stocks or real estate.
- Reality: The elite prioritize investments in self, skills, and business well before financial assets.
- Quote:
“The top 0.1% follow a completely different strategy than you think.” (00:34)
2. Stage 1: Invest in Your Foundation (Mental & Physical Health) (01:04)
- Health as a Baseline:
“Once you get rich, the only thing you care about is that you feel good about yourself having that money.” (01:15) - Priorities: Sleep, fitness, nutrition.
- Investment Hack:
Dan recommends paying for an expensive gym to increase both commitment and to network upwards. - Quote:
“My best investment is in me because I will take me with me for the rest of my life.” (01:31)
- Networking Through Environment: “Cheap people don't go to expensive gyms...get around other CEOs, entrepreneurs…”
3. Stage 2: Invest in Skills & Knowledge (04:11)
- Best ROI Comes from Learning:
“The best investments. The best ROI is to just buy better thinking.” (04:24) - Pay for Blueprints: Get answers from experts and mentors, turning teachers into relationships and leveraging their compressed knowledge.
- Personal Anecdotes:
- Dan’s own education via 1600+ business books and direct outreach to influential authors.
- His son investing in digital courses at age 12.
- Networking for Growth:
“Your network is your net worth. Turns out, wildly right?” (07:55)
- Reference to the impact of Keith Ferrazzi's “Never Eat Alone.”
- “Just In Time” vs. “Just In Case” Learning:
- Focus your learning to solve current problems, not hypothetical ones.
- Framework: Build a ‘Centurion Council’:
- 100 mentors, split as 25 authors, 25 operators, 25 coaches, 25 peers.
- The PACK Script:
- Proof: Open with evidence of value gained.
- Ask: A tight, specific question.
- Close: Respect time, signal progress.
- Quote:
“I call that bathing in the waterfall of their knowledge.” (10:21)
4. Stage 3: Invest in Your Business (15:00)
- Reinvest Where Returns Are Highest:
- Don’t let cash pile up; reinvest in marketing, sales, or delivery—where your business has bottlenecks.
- Buy Speed:
“The top 0.1% they don't guess. They buy speed and they reinvest in the machine that multiplies cash.” (15:10) - Gear & Tools:
- Upgrade your work setup for immediate gains—don’t be “the roofer using a hammer instead of a nail gun.” (15:45)
- Blueprints, Playbooks, & Consultants:
- Pros pay for shortcuts rather than relying solely on trial and error.
- Don’t hesitate to pay handsomely for the right expertise.
- Developing Your Team:
- Invest in coaches and masterminds for department leads, not just the founder.
- “When you build the people, the people build the business.” (18:57)
- Personal Story:
- Dan’s shift after hiring coach “Bob”:
“Two failed companies over seven years. In the first 12 months, almost a million in revenue.” (20:31)
- Dan’s shift after hiring coach “Bob”:
- The Buyback Principle:
“You don't hire people to grow your business. You hire people to buy back your time.” (22:05)
- Reinvestment Framework:
- Set aside a fixed % of profits (suggests 20-30%) for reinvestment each quarter.
- Use Theory of Constraints (TOC) to direct where capital unlocks growth.
5. Stage 4: Invest in Financial Assets (Stocks, REITs, etc.) (25:42)
- Financial Assets Are for Preservation, Not Creation:
“These don't make you rich. They keep you rich.” (25:54) - Order of Investing:
- Only after foundation, skills, and business investments are financial assets introduced.
- Ken’s Advice:
“Making money, that’s easy. Keeping it—super hard.” (26:45)
- Asset Allocation:
- Stocks, S&P 500, REITs are “safety net” options, not engines for explosive growth.
- Personal Cautionary Tale:
- Dan’s failed venture into Detroit real estate during the ’08 financial crisis:
“I thought I was smart... turns out, not a good move.” (28:04)
- Dan’s failed venture into Detroit real estate during the ’08 financial crisis:
- The “Buy, Borrow, Die” Strategy (29:13):
- Buy assets and never sell them (ideally in a family trust).
- Borrow against these assets for liquidity; loans aren’t taxed.
- Insurance pays off the loan on inheritance, assets transfer tax-free.
- Quote:
“I consider dollars as little workers and they need to be put to work.” (30:21)
6. How Much Should You Invest? (31:12)
- Base Guideline:
- 10% of income into long-term, tax-efficient assets to build leverage and financial habits.
- 10% tithing/giving as a way to “get what you want for others.”
- Personal Development Priority:
- “My rule is if you have capital, invest in you and then you invest in your team and then you invest around people around you so everybody gets better.” (32:14)
- Direct Quote:
“It's not about having it. It's about becoming.” (32:45)
Notable Quotes & Memorable Moments
- On Stages of Investment:
“Step one, go get money. Step two, invest in your health. Step three, invest in your knowledge. Step four, invest in your business. Then five, do this stuff.” (30:29)
- On Community and Free Resources:
“Even if you have no money to invest, that's the best way for you to start.” (34:05)
Timestamps of Key Segments
| Timestamp | Segment Description | |-----------|---------------------------------------------------| | 00:00 | Introduction to investing like the top 0.1% | | 01:04 | Stage 1: Foundation (Health & wellness) | | 04:11 | Stage 2: Skills & Knowledge Investment | | 10:21 | Centurion Council & PACK script | | 15:00 | Stage 3: Reinvesting in Your Business | | 20:31 | Dan’s coaching/mentorship transformation | | 22:05 | The Buyback Principle explained | | 25:42 | Stage 4: Financial Asset Investments | | 28:04 | Dan’s failed Detroit real estate investment | | 29:13 | 'Buy, Borrow, Die' & tax strategies | | 31:12 | Personal investment/rule of thumb | | 34:05 | Free resources and next steps |
Conclusion: Action & Commitment
Dan concludes by challenging listeners to commit to action, regardless of starting point or resources:
“Doesn't matter if you have no money or you have a lot of money, what's the one thing that you're going to make a commitment to?... start anything to be a better investor.” (33:23)
He urges embracing a mindset of constant personal investment as the true foundation of lasting wealth.
Further Resources:
- Martell Method Newsletter – free weekly insights on mindset, business, and growth
- Buy Back Your Time Book
